GSI Analysis: New Jersey’s Income and Output Record Steady Q3 Increases

• The state’s real GDP and Personal Income grew at about the national pace. Pennsylvania grew more rapidly, while New York’s output grew noticeably less than New Jersey.
• The composition of income growth was good, being weighted to earnings.

The 2024:Q3 figures for New Jersey’s gross output and personal income show that the state was keeping up with the national pace. Real GDP grew at a 3.0% annual rate, virtually undistinguishable from the nation’s 3.1%. As that would suggest, New Jersey was in the middle of the pack, ranking 29^th. Among our neighbors, Pennsylvania stood out, with a 4.1% growth rate, while New York’s was a meager 1.8%.

The story was rather similar for Personal Income. The income of New Jersey residents grew at a 3.0% rate (this was the same rate of growth as real GDP. There is no reason that the two measures should grow at the same rate), again close to the national pace of 3.2%, and our ranking of 28 was essentially the same as for real GDP. As was the case for real GDP, Pennsylvania grew more rapidly (a 3.9% rate of growth), but in this case New York’s growth was the same as New Jersey’s.

Within the details, the net earnings of New Jersey residents (employee composition plus the income of noncorporate business) grew at a 3.9% annual rate, in this case a touch higher than the nation’s 3.8% figure. Net earnings are probably a better guide to underlying growth than the aggregate income number. Transfer payments rose more slowly here than elsewhere, reducing overall personal income growth.